The pace of transformation of the established men’s clothing giant Heilan House into a national brand is accelerating.
On the evening of March 1, Heilan Home (600398) Co., Ltd. (600398.SH) issued an announcement on changing the company name and revising the “Articles of Association”. The company plans to The Chinese name will be changed from “Heilan Home Co., Ltd.” to “Heilan Home Group Co., Ltd.” and the English name will be changed from “HLA CORP., LTD.” to “HLA GROUP CORP., LTD.” .
It is worth noting that the company’s business scope has also expanded, adding daily necessities sales, outdoor product sales, office supplies sales, maternal and child product sales, household appliance sales, and cosmetics retail. and other 15 categories.
Behind the change in just two words, it can be seen that there are deep changes in the brand positioning and development strategy of Heilan House.
It is reported that Heilan House has gradually formed a diversified brand layout of men’s clothing, women’s clothing, children’s clothing, professional clothing and lifestyle home furnishings. According to its announcement, this name change is the company’s determination to deepen its efforts in the above-mentioned five major segments and develop into a clothing and lifestyle retail group with multiple brands.
Euromonitor data pointed out that in 2020, Heilan House accounted for 5% of the men’s clothing market share, ranking first for 7 consecutive years. The status of the main brand is stable. In order to seek the second growth curve, the company actively explores new tracks and incubates the women’s clothing brand OVV, the lifestyle home brand Heilan Selection, and acquires the children’s clothing brands boys and girls and Yingshi to form a brand matrix.
In November 2020, after the new chairman Zhou Lichen took office, he carried out more profound changes in products, channels, marketing and other aspects. On the product side, Heilan House insists on providing consumers with cost-effective products, adjusting the product structure based on consumer demand, adding leisure categories, and improving fabric quality. The channel side is accelerating online. In the first three quarters of 2020, the year-on-year growth rates of online revenue in a single quarter were 16.7%, 40.2% and 111.3% respectively, accounting for 9.6%, 14.1% and 21.1% of the revenue in the quarter respectively. Plan 3- Within 4 years, the proportion of online channels will reach 30-40%.
Shenwan Hongyuan’s research report pointed out that Heilan House provides different products for different channels, such as customizing the “National Premium Products” series specifically for young consumers to meet differentiated needs. Online channels have also been subdivided, and products corresponding to the characteristics of platforms such as Tmall JD.com, Pinduoduo, Vipshop, and Douyin Kuaishou are launched, and are carefully managed by independent teams. For offline channels, we will optimize and adjust the store structure, expand the number of shopping mall stores, accelerate store iteration and upgrade, and deepen same-store growth.
In addition, the marketing methods are also more youthful. In 2020, Jay Chou, the brand spokesperson, and Lin Gengxin and Wu Lei were signed, and the trend of multi-brand spokesperson strategy is obvious. At the beginning of 2021, Heilan House made a high-profile appearance as the exclusive clothing partner of the CCTV Spring Festival Gala in the Year of the Ox, enhancing the influence of the national brand.
The textile and garment industry is an important part of my country’s national economy and is also my country’s advantageous industry with international influence. Affected by the epidemic in 2020, garment industry companies have increased their production lines. We seek transformational breakthroughs by increasing our business, creating national trend elements, and improving our professional level.
It is reported that Heilan House is actively exploring new retail by digging deep into social traffic, opening up and integrating online and offline channels, and improving the terminal sales of products. Under the strong development of the Internet, , seizing the golden period of new retail trends in the clothing industry.
During the 2021 Spring Festival Golden Week, the year-on-year sales growth data of China’s key monitoring companies show that the sales of key monitoring companies in the clothing industry increased by 107.1% year-on-year, and the industry has strong momentum for recovery.
Industry experts analyze that with the growth of consumption upgrade in the retail sector, my country’s women’s clothing consumer market is huge and has large room for growth, which will support the growth of mid-to-high-end women’s clothing. .
Heilan Home stated that it will continue to develop high-quality, functional hard-core products, enhance brand customer stickiness, actively create new retail across the entire network, and promote multi-channel traffic conversion. Continuously improve the digitalization of operations, accumulate new momentum for sustainable development, and build a new pattern of high-quality development. </p